Do you pay tax when you buy DVC

[steelfish535]

In the beginning processes, and am just wondering...
Thanks!

 

[abner1776]

There is no sales tax involved because you are buying a real estate interest which is not subject to tax. Also, when I purchased into DVC, Disney covered all expenses so what I paid for the points is the entire amount I paid..nothing more. Now I understand that Disney is charging something like $250 for all closing costs, so just add that amount to the cost of the points.

Of course, this is the cost if you purchase thru DVC directly...if you buy through a reseller they will be other closing costs and fees associated with the purchase.

 

[RobDoc]

The only taxes involved are Property Taxes which are an included component of the annual maintenance fees.

Enjoy!

 

[drusba]

Part of the closing costs are real estate transfer taxes charged by the state and county (they are far less than anything you would think of as a sales tax). If you buy resale, you may also have adjustments at closing for property taxes, e,g., you may get a deduction or an addition to your cost depending on what the seller has already contributed to property taxes for the year.

 

[Minnie88]

Who pays the yearly maintenance fee on a resale? For example, say you are buying points now that have an October use year and there are no points available until October. Who should pay the maintenance fee that was just billed in January? If it has already been paid, would the seller expect to be reimbursed for all or part of the fee?

 

[WendyinNC]

Who pays the yearly maintenance fee on a resale? For example, say you are buying points now that have an October use year and there are no points available until October. Who should pay the maintenance fee that was just billed in January? If it has already been paid, would the seller expect to be reimbursed for all or part of the fee?

It's all negotiable with the seller. I paid the maintenance fees for my Feb use year since all 2007 points are available. However, I got the seller to pay closing costs.